icq matrix

INTERNAL CONTROL QUESTIONNAIRE

Complete the matrix by performing the following:1) The Executive Director is responsible for the accuracy and approval of the completed Internal Control Questionnaire (ICQ) matrix.

As evidence of the Executive Directors approval, the Executive Director must e-mail the completed ICQ matrix to [email protected] 2) Fill in the name of each employee who has a position or similar position identified below. (Not needed for board members)3) Check the column of the person responsible for each internal control task. If not applicable write "NA" in the "Yes, No, or N/A" column.4) For answers requiring a yes or no answer, write yes or no in the "Yes, No, or N/A" column.5) For questions which require an explanation, fill in the information in the space provided and if more space is needed, expand the size of the row.

Or, you may write the answer on additional paper.6) Add additional rows for more employees or additional columns for more staff or board member titles, as necessary.7) In the Comments section provide any additional information.

Organization NameBoard

MemberExecutive Director

CFO Treasurer Accounting Assistant, A/P or A/R Clerk

Accounting Assistant, A/P or A/R Clerk

Program Administrator

Other Personnel

Yes, No, or N/A

Comments

Name of each employee below:

A Segregation of Duties IC Questions

1 Who signs payroll checks?2 Who signs expenditure checks?3 Who can post transactions to the GL?4 Who has access to blank checks?5 Who prepares bank statement

reconciliations?

6 Who has access to cancelled checks?7 Who authorizes/approves purchases?8 Who prepares checks?

B General internal Controls

1 Are cost centers established in theaccounting system for each program?

2 Who approves/reviews bankreconciliations?

3 Who approves monthlyfinancials/P&Ls?

4 Who has a password to access thefinancial system?

5 Who has custody of blank checks?6 Are offices with sensitive information

locked during non-business hours?

7 Who tracks voided checks?

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INTERNAL CONTROL QUESTIONNAIREOrganization Name

Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

8 Who posts monthly/year end accruals?

9 Who reviews monthly/year endaccruals?

10 Who reviews monthly budgets to actualmonthly expenditures?

11 Are key employees required to takeannual leave?

12 Is a staff person responsible forreviewing policies and procedures forcompliance with Commission rules?

13 Who conducts the review of policies and procedures for compliance with Commission rules? How often?

C Control Over Expenditures

1 Who approves purchase requests?2 Who approves payments?3 Are invoices stamped with received

date?

4 Are invoices stamped with the dateposted?

5 Are invoices stamped with the datepaid?

6 Are invoice numbers entered into theaccounting system?

7 Does the audit trail function remainturned on in the accounting software?

8 Are purchase requests matched toinvoices when paid?

9 Is the due date of invoices entered inthe accounting system?

10 Who reviews expenditures forcompliance with grant requirements?

11 Who performs and maintains the FSRreconciliation to the GL?

12 Who reviews the FSR reconciliation?

2


Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

13 How does the person posting the expenditure know which program a particular expenditure benefited?

14 What documents are reviewed when approving payments?

15 Describe the process of how supplies, services, and equipment are procured and paid for.

D Control Over Payroll

1 Who conducts the review of policies and procedures for compliance with Commission rules? How often?

2 Are time sheets approved bysupervisors?

3 Who approves the executive directors'timesheets?

4 Who approves the executive directors'bonuses?

5 Is the payroll processing contractedout?

6 Who ties the payroll register to thegeneral ledger?

7 Who has custody of unclaimed payrollchecks?

8 Who reviews the validity of payrollexpenditures?

9 Who prepares the 941 payroll taxreturns?

10 Who reviews the payment of payrolltaxes?

11 Describe how payroll is processed, documented, and paid.

3


Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

E Controls over Cost Allocation

1 Who calculates allocation percentages?

2 Do time sheets identify each programan employee could work for and othernon-billable activities?

3 Who approves allocation/distributionpercentages?

4 Describe the process used to ensure that the methodologies utilized in the cost allocation spreadsheets adhere to the methodologies in the CAP.

5 For which allocation methodologies are cost pools established?

F Controls Over Billing

1 Who enters the FSRs and RFAs intoBHIPS?

2 Who reconciles the FSRs to the RFAs?

3 Who approves/reviews FSRs andRFAs?

4 Who reviews the information enteredinto BHIPS?

5 Who approves and submits BHIPS unitrate billings?

6 Who reconciles the BHIPS unit ratepayments to the billing reports and theclient attendance rosters for groupsessions?

4


Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

G Control Environment Controls

1 What type of oversight does board provide to management and staff regarding integrity and ethical values?

2 Has the board adopted formal codes of conduct for the organization?

3 What are the penalties or disciplinary actions for violation of the formal codes of conduct?

4 What mechanisms are in place to encourage employees to report suspected violations of the codes of conduct?

H Commitment to Competence

1 Are there formal job descriptions foreach position?

I Board Direction

1 How often does the board meet?2 Does the organization do business with

any board members or board members'relatives?

3 Are there employees that are boardmembers?

4 Is there a board sub-committee onfinance?

J Management's Philosophy and Operating Style

1 Does management hold formalmeetings with staff to discuss policesand procedures?

2 How often are the formal meetings held with staff to discuss policies and procedures? How is the meeting documented?

3 How often does management meet with employees?

4 How does management solicit input from employees?

5


Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

5 What types of financial and other management reports does management review and how often?

6 What is the turnover of key management? Identify turnover during the past 12 months.

K Organizational Structure

1 What is the hierarchy for the communication process within the organization and with the board?

L Assignment of Authority and Responsibility

1 Are there formal procurementprocesses and written procedures?

2 Does management have procedures toidentify/monitor agency goals andobjectives and determine if they aremet?

3 Describe the procedures used to monitor if goals and objectives are being met?

4 Do the written procurement proceduresmeet Commission requirements?

5 What are the checks and balances in place regarding procurement?

M Human Resources Polices and Practices

1 What type of internal controls are in place to ensure that the CEO, CFO, key managers, and staff meet education, experience, and/or credentialing requirements as set forth by the Commission or have the experience and/or education to maintain effective programmatic and financial controls?

6


Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

N Risk Assessment Controls

1 Do the policies and procedures addressthe safeguarding of assets?

2 Do polices and procedures addresspreventing fraud and intentionalerrors?

3 Has the provider attempted to identifythe processes, controls, and otherprocedures needed to mitigate fraudrisk?

4 What procedure or system has been used to identify the processes, controls, and other procedures needed to mitigate fraud risk?

5 What training is provided to accounting staff to ensure that they have an understanding of the accounting and reporting processes?

6 Are policies and procedures approved by the board, reviewed annually, and revised as needed? In the comments section note the last date of review and approval.

O Communication Controls

1 Are the polices and procedures madeavailable to staff?

2 What financial and management reports are provided to management and the board? How often are the reports provided to management and the board?

3 Is there a process in place forcommunicating changes in accountingmethods, regulations, and rules to

4 Describe the process for communicating changes in accounting methods, regulations, and rules to staff.

5 Are there established internal andexternal communication channels?

6 Describe the internal and external communication channels?

7


Board Member

Executive Director




Other Personnel

Yes, No, or N/A

Comments

P Monitoring

1 Does management periodically reviewthe accounting processes torecommend changes needed forimprovement?

2 Does management periodicallycompare operating results with thebudget?

3 Does management review the internalcontrol process to recommend changesto ensure compliance?

4 Describe how and when the review of internal control processes takes place?

Q Information System Controls

1 Are there formal written IT policiesand procedures?

2 Is the financial system passwordprotected?

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icq matrix

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